Transcript Document

WE 640
Welding Production
Plant Location
Arc Welding Processes
Lesson Objectives
When you finish this lesson you will
understand:
• The importance of building site location and
building layout for manufacturing
Learning Activities
1. Read Course Notes
2. Look up Keywords
3. View Slides;
4. Listen to lecture
5. Do on-line
workbook
6. Do homework
Keywords:
Plant Location, Transportation Costs, Building Layout
Food for Thought:
Have US Manufacturers lost sight of Fundamental
Values?
 Produce something of value
 At low cost
 Of high quality
 Make it available when it is demanded
Possible Reasons:
 Decline in the Work Ethics
 Attention Captured by Marketing in 70’s
 Attention on Finances in 80’s & 90’s
Some of the Strategies We will Consider This Quarter
Production Systems
How do we match our production system designs to meet the needs of the market? How flexible
should the system be?
Capacity/location Decisions
Should increased capacity be added in large or small units? When do we add capacity? Where? What
are the effects of excess capacity?
Technology
Can we effectively use technology (CAD/CAM, robotics, automation)? Can engineers make the link
to get these technologies into manufacturing?
Workforce Management
Can we keep our workforce productive without “giving away the farm”? Can we promote ethics in the
workforce? Can we develop flexibility in the workforce?
Operating Decisions
How do we maintain quality and keep control of our manufacturing systems? How do we implement
Total Quality Management (TQM)?
Suppliers and Distribution
How do we implement Just-in-time delivery? Where do we locate our plants?
Plant Location
POINTS TO CONSIDER
SOURCES OF HELP
 Local State and Federal Industrial
Development Groups
 Incubators
 Bankers and Development
Companies
 Small Business Bureau
Plant Location
POINTS TO CONSIDER
 Market Proximity (freight costs, service,
etc.)
 Raw Material Proximity
 Land/Building Costs (buy, build, or rent)
 Possible Expansion
 New Markets
 Available Labor (availability, skill, training
facilities, unions)
 Taxes (tax incentives)
 Grants (state, federal)
 Labor Laws
 Energy Costs (water, electric, gas)
 Zoning laws
 Environmental Considerations
 Schools
 Medical Services
 Cultural and Recreational Services
SOURCES OF HELP
 Local State and Federal Industrial
Development Groups
 Incubators
 Bankers and Development
Companies
 Small Business Bureau
Plant
Capacity
Warehouse
A
B
C
D
200
100
400
400
1
2
3
4
5
Total
1,100
From Plant
1
2
A
B
C
D
$22
$20
$24
$23
$30
$29
$30
$28
Quantity
Needed
150
300
100
200
300
1,050
Transportation
Cost
Analysis
We make welded boxes in
our plants A,B,C,D and ship
to our customer’s warehouses
1,2,3,4,5.
To Warehouse
3
4
$25
$21
$24
$24
$20
$25
$24
$24
5
$24
$20
$24
$23
From
Plant
A
1
2
22
150
0
50®
100
0
D
25
0
29
24
C
Demand
30
20
B
To Warehouse
3
4
5
23
0
21
0
30
150
20
24
0
25
20
100
24
0
24
150
22
24
0
200
0
100
0
0
0
23
Supply
0
0
0
24
28
Ex
400
0
0
0
0
50
300
50
150
300
100
200
300
50
400
1,100
150  22   50  30   100  29   150  30   100  24 
 150  24   50  22   300  23  50  0  26,200
From
Plant
A
1
2
22
150
0
0
D
0
100
0
25
29
24
C
Demand
30
20
B
To Warehouse
3
4
5
23
50
21
0
30
200
20
100
28
24
0
25
24
24
100
22
200
0
0
24
0
0
100
0
0
0
23
Supply
0
20
0
24
Ex
400
0
0
0
0
50
300
50
150
300
100
200
300
50
400
1,100
150  22 50  20 100  29 200  30 100  24
 100  24  50  22  300  23 50  0   26,000
Turn to the person sitting next to you and discuss (1 min.):
• We just considered transportation costs as one of the major
components in location of our manufacturing facility. There
was a list of other points to consider given as well. What do
you think is the next couple of most important
considerations in building location?
BUILDING LAYOUT CONSIDERATION
Space Allocation
Work Area
Aisles
Elevators
Stairways
Offices
Cafeteria
Dispensary
Stock Room
Tool Room
Dispatching
Locker Rooms
Rest Rooms
Utilities
Shipping
Receiving
Rework Area
Utility Considerations
Telephones
Hot & Cold Water
Steam
Heat
Intercom
Unpurified Water
Natural Gas
Ventilation
Computer Network
Air-conditioning
Tank Gas
Electricity
Compressed Air
Lights
Security
Outdoor Area
Parking
Outdoor Storage
Transportation Methods
Truck
Air
Rail
Water
SINGLE vs. MULTIPLE STORY
ADVANTAGES OF SINGLE STORY
 Easier to move load horizontally than up & down
 Floors on second story may not hold loads
 High ceilings - for overhead conveyors
 No support column restrictions
 No need for elevators
 Cheaper to build
DISADVANTAGES OF SINGLE STORY
 More land space needed
 More costly to heat
Turn to the person sitting next to you and discuss (1 min.):
• You can not always get the exact building type you want,
particularly if you decide to rent. If you rent a two story
building, from the list of “Building Layout Considerations”
what might you locate on the second floor?